Other Techniques: Decision Trees and Expected Monetary Value
Decision Trees are a form of quantitative risk management which can be used in conjunction with the expected monetary value (EMV) to decide on the best risk option. The expected cost of each outcome is calculated, resulting in a set of financial alternatives from which the best option can be chosen.
This is an alternative way of depicting and evaluating risk. Here is a typical example where a new CRM is required and the decision is build vs buy.
Other Techniques: Pareto Analysis
Pareto stipulated the “80:20” rule – 20% of the cause produces 80% of the effects. The Pareto Principle holds true in an amazing number of situations. It is good for use in Scrum risk analysis as a technique to determine the highest risks, which are then prioritized and tackled first by the team. The values used for the Pareto analysis derive from the severity values calculated as a factor of probability x impact.
While this a useful technique and the findings can be graphed in a Risk Burndown Chart it must be remembered that all the data is historical and based on past events. Risks that have been identified as possibly occurring in the future are not catered for.
Other Techniques: FMEA
Failure Mode Effects Analysis was originally used by the US military and later adopted by automotive and aeronautical engineering. It can be used in testing a process, product or service, but differs from industry to industry. There are other techniques that are extensively used in engineering, such as the “physics of failure”. However, the use of such techniques requires training for the team, and the traditional approach of assessing and mitigating risks works well for all skill levels no matter what maturity level your company’s risk management processes have reached.
Recommended Further Reading
The following materials may assist you in order to get the most out of this course:
Course Contents
Section 1: Agile Project Management
Section 2: Using the Agile Manifesto to Deliver Change
Section 3: The 12 Agile Principles
Section 4: The Agile Fundamentals
Section 5: The Declaration of Interdependence
Section 6: Agile Development Frameworks
Section 7: Introduction to Scrum
Section 8: Scrum Projects
Section 9: Scrum Project Roles
Section 10: Meet the Scrum Team
Section 11: Building the Scrum Team
Section 12: Scrum in Projects, Programs & Portfolios
Section 13: How to Manage an Agile Project
Section 14: Leadership Styles
Section 15: The Agile Project Life-cycle
Section 16: Business Justification with Agile
Section 17: Calculating the Benefits With Agile
Section 18: Quality in Agile
Section 19: Acceptance Criteria and the Prioritised Product Backlog
Section 20: Quality Management in Scrum
Section 21: Change in Scrum
Section 22: Integrating Change in Scrum
Section 23: Managing Change in Scrum
Section 24: Risk in Scrum
Section 25: Risk Assessment Techniques
Section 26: Initiating an Agile Project
Section 27: Forming the Scrum Team
Section 28: Epics and Personas
Section 29: Creating the Prioritised Product Backlog
Section 30: Conduct Release Planning
Section 31: The Project Business Case
Section 32: Planning in Scrum
Section 33: Scrum Boards
Section 34: Sprint Planning
Section 35: User Stories
Section 36: User Stories and Tasks
Section 37: The Sprint Backlog
Section 38: Implementation of Scrum
Section 39: The Daily Scrum
Section 40: The Product Backlog
Section 41: Scrum Charts
Section 42: Review and Retrospective
Section 43: Scrum of Scrums
Section 44: Validating a Sprint
Section 45: Retrospective Sprint
Section 46: Releasing the Product
Section 47: Project Retrospective
Section 48: The Communication Plan
Section 49: Formal Business Sign-off
Section 50: Scaling Scrum
Section 51: Stakeholders
Section 52: Programs and Portfolios